Last shoe? Probably not, but it is significant that the golden boys (Goldman Sachs -GS) have come to the Fed (and to us) with their hat in hand. The comments on CNBC were that GS was 'coming in out of the cold' in this case; plus, it was said that the Wall Street model of the past 20 years is being shown to be faulty.
What about Chicago and their contribution to the frothiness (like truthiness, but more troublesome when value is concerned)?
Just a mere three years ago, GS and BA combined to create SPR while trashing many peoples' lives; this has been mentioned before; GS's asking for help opens the door for more explicit analysis and expositions.
That event was only one of many. Of course, we could talk about Blackstone's (taking China for a billion or two) problem. We could talk about how Minsky's ideas apply.
You know, the real kicker is that student loan handling was screwed up, that mortgage handling allowed many to get $10M windfalls based upon mere illusion, that some CEOs even expected their big payouts while that under their command was severely ill, that ...
We can go on and on about this, intend to explore it to the depths, and to discuss alternatives that are better. It'll take time.
08/24/2009 -- Last year, Ben blinked and panicked. He frantically pulled out all stops as if with no thought for tomorrow. Now, he has no use for 'mea culpa' big daddy that he is. Ben, start to unwind now. The Vienna School's view that these things are undecidable (which is a computational issue) is right on.
12/13/2008 -- Much water has passed under the bridge. But, new types of revelations continue to arise. Must admit that I hadn't consider this depth of fraud, both in the duration of the scam or extent.